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Author: Mrs. Anjum Shahnawaz

  • Govt. decides to continue subsidy on petroleum prices

    Govt. decides to continue subsidy on petroleum prices

    ISLAMABAD: The coalition government led by PML-N has decided to continue the subsidy on prices of petroleum products in order to prevent people from high prices.

    Finance Minister Miftah Ismail on Sunday May 15, 2022 announced to maintain the prices of petroleum products at the same level, which were announced by the previous PTI government.

    READ MORE: Pakistan cuts petroleum prices amid Russia-Ukraine War

    On February 28, 2022, former Prime Minister Imran Khan announced reduction in prices of petroleum products and freeze the prices till June 30, 2022. This decision came with announce of multi-billion rupees subsidy to keep the fuel prices lower.

    This decision was strongly criticized by the legislators, who are now sitting on the treasury benches. The present government despite strong opposition to the decision to grant of subsidy on the petroleum prices, has no option but to keep the prices unchanged during its tenure of more than a month.

    READ MORE: New government keeps petroleum prices unchanged

    According to the statement the new prices of the petroleum products effective from March 01, 2022 are:

    The price of petrol slashed by Rs10 to Rs149.86 per liter from Rs159.86.

    The rate of high speed diesel has been reduced by Rs10 to Rs144.15 per liter from Rs154.15.

    The price of kerosene oil has been brought down by Re1 to Rs125.56 per liter from Rs126.56.

    Similarly, the rate of light diesel oil has been slashed by Rs5.66 to Rs118.31 per liter from Rs123.97.

    Miftah Ismail on Sunday said despite increasing prices of petroleum products Prime Minister Shehbaz Sharif had decided not to transfer the burden of price hike on masses.

    The decision has been taken at a time when the government is going to discuss loan program under Extended Fund Facility (EFF) with the International Monetary Fund (IMF). Under this program, the government has already agreed to raise the prices of petroleum products by removing subsidies.

    READ MORE: Pakistan surrenders to IMF, agrees to remove subsidies

    The IMF issued the following statement on April 24, 2022:

    “We had very productive meetings with the Finance Minister of Pakistan Miftah Ismail over Pakistan’s economic developments and policies under the Extended Fund Facility (EFF) program.

    “We agreed that prompt action is needed to reverse the unfunded subsidies which have slowed discussions for the 7th review.

    “Based on the constructive discussions with the authorities in Washington, the IMF expects to field a mission to Pakistan in May to resume discussions over policies for completing the 7th EFF review.

    “The authorities have also requested the IMF to extend the EFF arrangement through June 2023 as a signal of their commitment to address existing challenges and achieve the program objectives.”

    READ MORE: Pakistan raises petrol price to record high at Rs160/liter

    Miftah Ismail in its latest statement said: “PTI government has destroyed economy of the country.”

    The Minister said agriculture sector was badly ignored and resultantly Pakistan imported wheat worth of six hundred million dollars last year. He said this year wheat worth of $1.5 billion will have to be imported.

    Miftah Ismail said prices of flour soared up from 35 rupees per kg to 80 rupees per kg in last four years.

    Talking about sugar price, Miftah Ismail said that government is providing cheap sugar and it has directed to further decrease the price of commodity. He also said the government will not import sugar this year.

  • FBR transfers IRS officers of BS-17 to BS-20

    FBR transfers IRS officers of BS-17 to BS-20

    ISLAMABAD: The Federal Board of Revenue (FBR) has transferred officers of Inland Revenue Service (IRS) of BS-17 to BS-20 with immediate effect under further orders.

    The FBR in a notification issued on May 14, 2022 transferred the following IRS officers:

    01. Sajjad Akbar Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Zone-I) Regional Tax Office, Sargodha from the post of Commissioner, (Audit-II) Large Taxpayers Office, Karachi.

    READ MORE: FBR tightens monitoring to prevent currency smuggling

    02. Sajjad Taslim Azam (Inland Revenue Service/BS-20), who is presently posted as Commissioner, (Audit-I) Large Taxpayers Office, Lahore, has been assigned the additional charge of the post of Commissioner-IR (Legal), Large Taxpayers Office, Lahore, as per Rules.

    03. Nadeem Bashir (Inland Revenue Service/BS-20) has been transferred and posted as Director, (Program Office) Reforms & Modernization Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (Zone-I) Regional Tax Office, Abbottabad.

    04. Muhammad Ejaz Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Enforcement-I) Medium Taxpayers office, Karachi from the post of Commissioner, (Legal) Medium Taxpayers office, Karachi. The officer is also assigned the additional charge of the post of Commissioner-IR (Legal), Medium Taxpayers Office, Karachi, as per Rules.

    READ MORE: Rupee falls for 8th straight day; dollar hits Rs192.53

    05. Haroon Masood (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Zone-II) Regional Tax Office, Abbottabad from the post of Commissioner, (WHT) Regional Tax Office, Abbottabad.

    06. Ms. Nafeesa Satti (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (ICTO Zone) Regional Tax Office, Islamabad from the post Director, (Program Office) Reforms & Modernization Federal Board of Revenue (Hq), Islamabad.

    07. Zulfiqar Ali Syed (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Audit-II) Large Taxpayers Office, Karachi from the post of Commissioner, (Enforcement-II) Large Taxpayers Office, Karachi.

    READ MORE: FBR rebuts currency smuggling to Afghanistan

    08. Hammal Baloch (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Enforcement-II) Large Taxpayers Office, Karachi from the post of Commissioner, (Enforcement-I) Medium Taxpayers office, Karachi.

    09. Fazal-e-Subhan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Zone-I) Regional Tax Office, Abbottabad from the post of Commissioner, (Zone-II) Regional Tax Office, Abbottabad.

    10. Murtaza Siddique Khan (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (WHT) Directorate General of Withholding Taxes Federal Board of Revenue (Hq), Islamabad from the post Chief (OPS), (SPR&S-I) Strategic Planning Reforms & Statistics Federal Board of Revenue (Hq), Islamabad.

    11. Pervez Ahmad Shar (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (Legal-II) Legal-IR Wing Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (OPS) (WHT) Regional Tax Office, Bahawalpur.

    12. Ali Muhammad (Inland Revenue Service/BS-19) has been transferred and posted as Additional Director, Addl. Directorate of Internal Audit (Inland Revenue), Rawalpindi from the post of Secretary, (PAC-IDT) Audit & Accounting Federal Board of Revenue (Hq), Islamabad.

    READ MORE: Multan customs auctions smuggled diesel oil on May 18, 2022

    13. Shakeel Ahmad Ejaz (BS-18) has been transferred and posted as Second Secretary, (PAC-IDT) Audit & Accounting Federal Board of Revenue (Hq), Islamabad from the post of Assistant Director (Audit), Regional Tax Office, Islamabad.

    14. Mian Muhammad Ibrahim (BS-18) has been transferred and posted as Second Secretary, (PAC-DT) Audit & Accounting Federal Board of Revenue (Hq), Islamabad from the post of Assistant Director (Audit), Regional Tax Office, Islamabad.

    15. Irfanullah (Inland Revenue Service/BS-18) has been transferred and posted as Additional Commissioner Inland Revenue, (OPS) Corporate Tax Office, Islamabad from the post of Deputy Commissioner, Regional Tax Office, Abbottabad.

    16. Iftikhar Masood Khan (Inland Revenue Service/BS-18) has been transferred and posted as Additional Commissioner Inland Revenue, (OPS) Regional Tax Office, Lahore from the post of Deputy Commissioner, Large Taxpayers Office, Lahore.

    17. Muhammad Tariq (Inland Revenue Service/BS-18) has been transferred and posted as Additional Commissioner Inland Revenue, (OPS) Regional Tax Office, Peshawar from the post of Deputy Commissioner, Regional Tax Office, Peshawar.

    18. Rashid Mahmood Khan Bhettani (Inland Revenue Service/BS-18) has been transferred and posted as Additional Director, (OPS) Addl. Directorate of Internal Audit (Inland Revenue), Peshawar from the post of Second Secretary, (PAC-DT) Audit & Accounting Wing Federal Board of Revenue (Hq), Islamabad. The officer is also assigned the additional charge of the post of Additional Director (OPS), Additional Directorate of Internal Audit (IR), Abbottabad, as per Rules.

    19. Ms. Amna Sharif (Inland Revenue Service/BS-17) has been posted (on joining) as Deputy Commissioner Inland Revenue, (OPS) Regional Tax Office, Peshawar.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • FBR tightens monitoring to prevent currency smuggling

    FBR tightens monitoring to prevent currency smuggling

    ISLAMABAD: The Federal Board of Revenue (FBR) has tightened monitoring to prevent currency smuggling in the wake of free-fall in rupee value against the foreign currencies.

    A statement issued on Sunday stated that FBR Chairman Asim Ahmad had instructed customs field formations for stepping up vigilance to ensure monitoring of passengers to stop currency smuggling.

    “Building further on its policy of zero tolerance against currency smuggling, Chairman FBR has instructed Customs field formations for stepping up vigilance at airports and land border stations. Concerned Collectorates to ensure monitoring of all inbound and outbound passengers,” according to a Tweet.

    The US dollar has continued momentum of appreciation against the Pakistan Rupee (PKR) in the interbank foreign exchange market.

    READ MORE: Rupee falls for 8th straight day; dollar hits Rs192.53

    The rupee fell for the eight straight days to the record low of Rs192.53 to the dollar on May 13, 2022. The fall in rupee value may be attributed to fall in foreign exchange reserves and high payments for imports. However, some believed the unrecorded outflow of foreign currency also depressed the foreign exchange market.

    Previously, the FBR on September 24, 2021 issued a clarification rebutting the reports of currency smuggling from Pakistan to Afghanistan.

    READ MORE: FBR rebuts currency smuggling to Afghanistan

    In the statement, the FBR categorically rebutted the unfounded, malicious intent and misleading in content propaganda being advanced by some irresponsible elements that there was a huge flight of dollars from Pakistan.

    It is further clarified that previously the bilateral trade between Pakistan and Afghanistan was carried out in US Dollars but now the same is being conducted in Pak Rupees (PKR).

    Furthermore, FBR has taken very stringent enforcement measures at the Airports to eliminate the possibility of any such an unethical practice.

    Pakistan Customs has made it mandatory for all passengers flying out of the country to undergo thorough personal scrutiny and 100 per cent declaration of currency through an automated process in order to ward off this nefarious illegal activity. This leaves the little possibility of the subject undesirable practice.

    READ MORE: Multan customs auctions smuggled diesel oil on May 18, 2022

    It is most likely that Chairman FBR and Member (Customs Operations) will visit the Pak-Afghan border to oversee the functioning of the above mechanism on the ground.

    It is further reiterated that this transparent and efficient mechanism being adopted at all the airports across Pakistan is facilitating the smooth and easy movement of outbound passengers, thus significantly reducing their time and cost.

  • FBR issues procedure for restoration of input tax adjustment

    FBR issues procedure for restoration of input tax adjustment

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued procedure to restore input tax adjustment claimed by Tier-1 retailers.

    The FBR on Friday issued Sales Tax General Order (STGO) No. 17 of 2022 dated May 13, 2022 regarding Tier-1 retailers – integration with FBR POS System.

    The procedure for reversal of bar on input tax adjustment by 60 per cent (i.e. the exclusion), as provided for in STGO No. 1 of 2022 dated August 3, 2022 has been automated. The STGO No. 1 has now been amended to the extent of reversal of bar on input tax adjustment by 60 per cent / issuance of exclusion certificates.

    READ MORE: POS service fee issue hampers sales tax return filing

    The FBR said a registered person whose adjustable input tax has been reduced by 60 per cent under Section 8B(6) of the Sales Tax Act, 1990, by inclusion in STGO shall file application for removal of this bar / for restoration of input tax adjustment. Application shall be filed through the system (IRIS) by selecting the relevant reason for the exclusion from the purview of the said section, along with any proof / evidence in support of the application.

    Once an application is submitted, the FBR said, adding that it shall be examined and an order (exclusion certificate) shall be passed by the concerned commissioner IR in the system, after such inquiries and examination of such record, as deemed necessary by him/her, as under:

    READ MORE: FBR issues list of 185 retailers for mandatory integration

    A. Acceptance of application (i.e. Exclusion Certificate allowed):

    In the event of acceptance of the application (i.e. exclusion certificate allowed) by the concerned commissioner IR, the system shall automatically restore the input tax adjustment as per law as under:

    i. Application accepted by the concerned commissioner IR for the reason of ‘integration with FBR’s POS system’: Restoration of input tax adjustment shall apply with effect from the tax period next following the tax period(s) during which the Tier-1 Retailer remained non-integrated. As already clarified by the Board, the 60 per cent reduction in input tax adjustment (disallowance) shall apply to the tax period in which the Registered Person integrated with FBR’s system, as well as, to the prior tax period(s) during which the registered person remained non-integrated or remained partially integrated (i.e. not all the terminals and / or branches were integrated).

    READ MORE: Adjustment restrictions hamper return filing by retailers

    Concerned Commissioner – IR, at the time of passing the order in the system shall provide the date of integration and the system shall restore the input tax adjustment accordingly, as above.

    ii. Application accepted by the concerned Commissioner-IR for the reason ‘Not a Tier-1 Retailer as defined under Section 2(43A) of the Sales Tax Act, 1990: In this scenario the reduction in input tax adjustment (disallowance) by 60 per cent, shall be reversed with effect from the date this bar was placed on and no tax period shall remain subjected to reduction in input tax adjustment (which was originally placed under section 8B(6) of the Sales Tax Act, 1990).

    READ MORE: FBR announces winners of third POS invoice draw

    B. Rejection of Application (i.e. Exclusion Certificate disallowed): In the event of rejection of the application, this reduction (disallowance) in input tax adjustment shall continue in all subsequent tax period(s) as before,

    The FBR said the procedure of automation in the hands of concerned commissioner-IR will be effective from May 10, 2022 and cases for restoration of 60 per cent reduction (disallowance) of input tax adjustment (excluded cases) as already communicated to PRAL by the Board, shall be managed/implemented in the system by PRAL.

  • Pakistan gives no trade relaxation to India

    Pakistan gives no trade relaxation to India

    ISLAMABAD: Pakistan on Wednesday clarified that it has not given any relaxation in trade with India. The clarification has been issued by the ministry of commerce.

    It said that the Ministry of Commerce manages 57 Trade Missions in 46 countries which includes the post of Minister (Trade and Investment) in New Delhi, India.

    READ MORE: Pakistan’s imports hit record high at $65.47 bn in 10 months

    The Post of Minister (Trade and Investment) in New Delhi exists for more than two decades and has no connection with the operationalization of trade with India or otherwise in the current context.

    READ MORE: Pakistan’s March trade deficit widens by only 5.5%

    The current cycle for selection of Trade and Investment Officers (TIOs) including New Delhi was initiated in December, 2021 and the final recommendations of the Interview Board were sent to Prime Minister’s Office on 01-04-2022 i.e. during previous Government.

    READ MORE: Pakistan’s trade deficit widens to $32 billion in 8MFY22

    The present Government has given the final approval on the recommendations of previous Government for selection of 15 TIOs.

    The appointment of Minister (Trade and Investment) New Delhi, therefore, may not be seen in the context of any relaxation of trade restrictions with India.

    READ MORE: Pakistan’s trade deficit widens by 92% in seven months

  • FBR imposes ban on leaves of tax officials

    FBR imposes ban on leaves of tax officials

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday imposed ban on leaves of tax officials during last quarter of the current fiscal year in order to ensure maximum revenue collection for the year.

    The FBR in an office order stated that the last quarter of the fiscal year is of paramount importance for tax collection.

    READ MORE: FBR chairman replaced despite massive collection growth

    All field formations of the FBR are expected to perform at their optimum capacity which entails presence on duty of all available human resources.

    However, it has been observed that some field formations are still forwarding leave requests of officers and officials which is prejudicial to the achievement of target assigned to the FBR during the current fiscal year.

    READ MORE: FBR surpasses collection target for July – April FY22

    The FBR said that foregoing in view, it is decided that competent authorities shall not grant leaves to FBR officers/officials till June 30, 2022 except in the cases: Hajj; extreme hardship cases; and study leaves for officers and officials, who are already selected and have obtained NOCs.

    READ MORE: LTO Karachi posts 41% collection growth in 10 months

    The revenue body further said that leaves forwarded to competent authorities at FBR (HQRs) shall only be considered and granted in the above mentioned cases till June 30, 2022 on case to case basis.

    All field formations are required to strictly adhered to the instructions and play their part in optimization of revenue collection and achievement of revenue target.

    READ MORE: FBR issues sales tax refund rules for tractor manufacturers

  • FBR raises CNG value for charging sales tax

    FBR raises CNG value for charging sales tax

    The Federal Board of Revenue (FBR) has issued SRO 587(I)/2022 dated May 10, 2022, announcing an increase in the valuation of Compressed Natural Gas (CNG) for the purpose of charging sales tax on sales to consumers.

    (more…)
  • Pakistan’s imports hit record high at $65.47 bn in 10 months

    Pakistan’s imports hit record high at $65.47 bn in 10 months

    ISLAMABAD: Pakistan’s imports reached to record high at $65.49 billion during first 10 months (July – April) 2021/2022, according to data released by Pakistan Bureau of Statistics (PBS).

    The import bill increased by 46.41 per cent to $65.47 billion during first 10 months of the current fiscal year as compared with $44.73 billion in the corresponding months of the current fiscal year.

    READ MORE: Pakistan’s March trade deficit widens by only 5.5%

    On the other hand, the exports of the country registered a growth of 25.46 per cent to $26.23 billion during the period under review as compared with $20.9 billion in the same period of the last fiscal year.

    The trade deficit sharply widened by 64.79 per cent to $39.26 billion during July – April 2021/2022 as compared with $23.83 billion in the corresponding period of the last fiscal year.

    READ MORE: Pakistan’s trade deficit widens to $32 billion in 8MFY22

    The exports of the country recorded an increase of 29.53 per cent to $2.87 billion in the month of April 2022 as compared with $2.22 billion in the same month of the last year.

    The import bill in April 2022 recorded an increase of 26.19 per cent to $6.62 billion as compared with $5.42 billion in the same month last year.

    The trade deficit ballooned by 23.74 per cent to $3.74 billion in April 2022 as compared with $3.02 billion in April 2021.

    READ MORE: Pakistan’s trade deficit widens by 92% in seven months

    Similarly, the exports recorded an increase of 3.27 per cent to $2.87 billion in April 2022 when compared with $2.78 billion in March 2022.

    The import bill recorded an increase of 2.96 per cent to $6.62 billion in April 2022 as compared with $6.43 billion in the preceding month.

    The trade deficit widened by 2.72 per cent to $3.74 billion in April 2022 when compared with $3.64 billion in March 2022.

    READ MORE: Pakistan’s trade deficit swells by 100% in 1HFY22

  • Eid ul Fitr 2022 Mubarak

    Eid ul Fitr 2022 Mubarak

    PkRevenue.com wishes Happy Eid-ul-Fitr 2022 Mubarak to all valuable readers and followers.

    May the light of the moon fall directly on you and Allah bless you with everything you desire this day. Happy Eid! May Allah flood your life with love and happiness on this occasion, your heart with care and your mind with wisdom, wishing you Eid Mubarak. The most beautiful thing for me is to see you smiling

  • Pakistan considers fixing locally assembled car prices

    Pakistan considers fixing locally assembled car prices

    ISLAMABAD: The government of Pakistan is considering to fix prices of locally assembled cars in to order discourage abnormal price hike.

    According to an official statement on Monday, apropos frequent price hike of locally manufactured and assembled automobiles in past few months.

    READ MORE: OICCI suggests duty cut on locally manufactured cars

    Spokesperson has expressed concern over price surge and has taken a serious view about the frequent price increases by local automobile manufacturers/ assemblers.

    READ MORE: Return filing be made mandatory for account holders

    The spokesperson said that the situation was unacceptable, and the government might consider to initiate regulatory measures which may include fixation of prices under the Price Control Prevention of Profiteering and Hoarding Act, 1977.

    READ MORE: Unjustified audit notices annoy taxpayers

    Furthermore, he said that the cost structure and justification of price increase had been sought from local manufacturers and assemblers.

    READ MORE: Foreign investors demand inter-adjustment of tax refunds